San Jose Real Estate * Santa Clara County * Richard Gonzalez * Real Estate Silicon Valley Broker Blog – News, Views, and Opinions

Michael and his son stand in front of their new home

I met Michael years ago and would say hello to him from time to time. Little did I know that Michael would inspire me in the way that he did when I handed him the keys to his new home.

You see about a year ago Michael had a stroke and it changed his life. Michael is a hard working single parent of two great kids. His Daughter just started college at SFU and his son lives with Michael.

The best part of this story is that Michael triumphed over his predicament and ultimately made changes in his life to prevent a reoccurrence of a stroke.  One of the decisions that Michael made was to become a homeowner early this year and as a result contacted me. Michael was looking for a home under$250,000; a challenging task especially because this has been the hottest price range in 2009 and the competition is fierce.

After months of looking and making offers we were successful in finding a cool little 2 bed 1 bath remodeled home in Gilroy. The story doesn’t end there; we now had to navigate though the short sale gauntlet once we were successful in getting into contract.

Among some of the challenges we faced were appraisal issues and loan approval hurdles to overcome with the seller’s Short Sale investor. The entire process took three months to close escrow.

Michael’s faith and patience played a large role in helping him realize his homeownership dream. Thank you Michael for showing me that prayer, perseverance, and patience are the keys to life.

I’m so happy for you and your family. You are a wonderful role model and a hard working father. This will be a very happy Christmas for you.

Note: Michael is eligible for the Federal tax credit and I signed him up for the complementary California Association of REALTORS housing affordability fund. The C.A.R. fund is available through the end of the year and pays his mortgage up to $1,500 for six months should Michael lose his job or as a result of an injury. The only requirement is that Michael purchases his home with the assistance of a REALTOR.

Chart shows sales climbing slowly while inventory declines

Associated Press article discusses signs of a possible comeback in home sales. Santa Clara County sales over the last 90 days have been HOT to say the least.

Read Article here

First Time Home Buyers Quest

A first time home buyers quest

I met a nice lady at my little girl’s school who told me an interesting story about her brother and his wife; it was a story about their first time home buying challenges. What struck me during the story was the reference to the lack of communication and professionalism on behalf of the real estate agent they chose, it flashed me back to 2005. Back then clients had to chase down real estate licensees and once they found an agent, they then had to go another twelve rounds trying to find the right home.

Truthfully I can’t see how anyone can successfully run their business by making their clients chase them. That being said and with all the economic challenges our economy faces this is the best time to use the right guide in your quest to owning a home.

Getting back to the story, this nice couple is employed, they are school teachers, and have a good down payment. The frustration for this young couple was lack of communication with their guide and the need for a great referral to a true knowledgeable real estate professional.

Definition of a guide:

To assist (a person) to travel through, or reach a destination in, an unfamiliar area, as by accompanying or giving directions to the person.

Here are some basic steps to prepare you for your journey

1. Ask for a referral to a real estate professional who someone you know recently used for a loan or to negotiate a transaction. Make sure they are a REALTOR and or subscribe to some organization with a code of ethics.

2. The rule of two: Gather your last two years tax returns, most recent two months bank statements, two most recent pay-stubs.

2.1 Gather any retirement, savings, 401k, 403b and anything else that shows you have access to money.

2.3 Many cities in the Silicon Valley have money to loan, most can be used without having to pay back the loan until you sell or refinance your home.

3. Have your mortgage professional pull your credit and give yourself a month or two to fix and/or repair your credit. This is huge because lenders will make a decision based on first impression; you want to give them what we refer to in this business as the “warm fuzzes”.

4. Have a laser like focus on the area where you want to live. The worst thing you can do is go out window shopping in this market.

5. Understand you’re “why”. Do you know “why” you want to buy, where you want to buy, what your motivations are, and the time line you have chosen? You will find that during your home buying process you will need to know you’re “why” otherwise you will find yourself second guessing every decision you make.

Following these simple steps will prepare you for your journey.

Don’t get sidetracked, stay with your guide

I find that buyers sometimes blame home buying frustrations on the real estate professional. Some times changing your guide is warranted,  before making a change ask yourself why you are willing to change your guide and understand how that change can have a positive or negative affect to your home buying experience. Are you doing this for financial incentives or for lack of professionalism? Choosing the first may cost you in the long run. Value is in a knowledgeable professional, not a licensee who is willing to give you a kickback, that takes no skill whatsoever. Who would you rather have as your guide? Crocodile Dundee or an inexperienced guide?

A true real estate professional can guide you through this process by showing your the overall real estate landscape and help you plot your path to home ownership before you begin your quest. The current market environment is full of wonderful home buying opportunities and treasurers but it is not for the faint at heart. Navigating through the pitfalls should be done with the assistance of your trusted professional advisor(your guide). You wouldn’t trek into the jungles of Africa without a guide, would you?